The role of a collection agency is to help your business collect unpaid debt. It’s an unfortunate fact that many businesses are stuck with outstanding debt, and bringing in a collection agency is often the only way to recoup that money. But collection agencies are not all equal, and it’s important to work with a firm that can bring experience and expertise to the table. Business and Professional Collection Service here in Reno shares these three tips for finding a reputable collection agency.
Research Your Options
As you begin searching for a collection agency, you might start by asking a trusted colleague for a recommendation or looking online. A quick Google search for “collection agency Reno” brings up 96 million hits in less than one second, which seems a little overwhelming. Try narrowing your options for a reputable debt collection agency by looking for one that specializes in your industry. Whether you’re a multi-hospital system, a preschool, or a landlord, finding an agency with a successful track record in your industry can make a big difference.
Do Your Homework
Once you’ve narrowed down your options to a few debt collection agencies suitable for your industry, spend some time vetting each firm.
• Confirm the agency’s legitimacy: Regulations for debt collection agencies vary from state to state. Make sure any firm you’re considering is bonded, licensed, and insured.
• Check for a Better Business Bureau rating: A BBB accreditation is a good sign of a firm’s credibility.
• Confirm the agency’s methods: What kind of recovery tactics does the agency employ? Do they offer skip tracing if a consumer has left no forwarding address? Is there a client portal that will help you manage your accounts?
Consider Costs
After confirming a debt collection agency’s legitimacy, contact the business directly. You’ll be able to double check that the firm has experience in your industry, carries insurance, uses cutting-edge methods for debt recovery, and get information about payment structure. While contingency is the most typical payment arrangement, some firms charge a flat-fee cost. Either way, you’ll want to understand what you can expect.
The Takeaway
It can be frustrating and fruitless to try to chase down outstanding debt while continuing to run your business. Bringing in a debt collection agency is often a wise strategy, but only if you can trust the firm to collect on your behalf in a manner that’s professional and compliant. Follow these tips for finding a reputable collection agency. And in Reno, Sparks, Carson City and all of northern Nevada, contact Business and Professional Collection Service for proven debt collection.
